08.07.2013
Eurogroup Statement on Greece
The Eurogroup has been informed on the outcome of t
he third review mission under the
second macroeconomic adjustment programme for Greec
e and welcomes the staff‐level
agreement between Greece and the Troika on the upda
ted policy conditionality underlying
the programme.
The Eurogroup notes with satisfaction that the prog
ramme is broadly on track with the prior
actions to be implemented shortly. Greece has made
further progress in implementing the
fiscal and structural reforms foreseen in the agree
d policy conditionality, albeit in some areas
at a slow pace. The Eurogroup also takes note that
the economic outlook is largely
unchanged from the previous review and is encourage
d by the early signals pointing to a
gradual return to growth in 2014. The Eurogroup com
mends the authorities for their
continued commitment to implement the required refo
rms that have already led to a
significant improvement of cost competitiveness, an
impressive strengthening of the fiscal
position and a more resilient banking sector. These
reforms are key to bring about sustained
growth and employment and to secure the sustainabil
ity of public finances. The Eurogroup
therefore expresses its appreciation for the effort
s made by the Greek citizens.
At the same time, significant further work is neede
d over the next weeks to fully implement
all prior actions required for the next disbursemen
t. Especially, the required reforms of the
public administration will need to be carried out s
o as to increase the efficiency of the public
sector while it is being steadily downsized, and fu
rther efforts are needed to improve tax
revenue collection. Ensuring a rapid and full imple
mentation of all the remaining reform
measures, including the prior actions, is essential
for mitigating risks to the programme and
for bringing about sustained growth and employment
and for securing the sustainability of
public finances.
The Eurogroup mandates the Eurogroup Working Group
(EWG) to approve the next EFSF
instalment, which amounts to EUR 3.0 bn. The instal
ment will be disbursed in two sub‐
tranches. A first sub‐tranche of EUR 2.5 bn will be
approved by the EWG and the EFSF Board
following the full implementation of the prior acti
ons and once Member States have finalised
their relevant national procedures. The disbursemen
t of the second sub‐tranche of EUR 0.5
bn will be made in October 2013, linked to the impl
ementation of the MoU milestones as
agreed between Greece and the Troika. Furthermore,
an amount of EUR 2.0 bn, equivalent
to the income on the SMP portfolio accruing to euro
area national central banks in 2012, will
be disbursed to Greece's segregated account. A firs
t part of EUR 1.5 bn will be passed on to
Greece's segregated account together with the disbu
rsement of the first EFSF sub‐tranche.
The remaining EUR 0.5 bn will be passed on to Greec
e's segregated account together with
the disbursement of the second EFSF sub‐tranche.
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